GETTING HELP DURING CORONAVIRUS
If the Coronavirus outbreak is affecting your business, we’ve highlighted the key help you can get, from us and from the Government.
We are all living through something never experienced before meaning there’s no guide or known solution available. With daily updates from the Government it also means a fast moving playing field.
So what help is available? At Raedan we’re working hard to assist our clients at this very uncertain time. We believe it’s going to take communication and community spirit to work this out together.
See more on what is available from us below.
With daily updates from the Government the range of support is constantly updating. At present the following key measures are available to businesses.
FUNDING / GRANTS / RELIEFS
Coronavirus Job Retention Scheme
Announced on 20 March, this scheme is available to all employers.
It is designed to provide up to 80% (max of £2,500 a month) of furloughed workers wages to employers, allowing them to retain employees through the outbreak.
Initially intended to last three months the chancellor has suggested it could be available longer if needed.
So what’s a furloughed worker? It’s an employee who is forced temporarily to be absent from work but is not made redundant. I.e. anyone who is unable to work during coronavirus, working from home doesn’t count!
More questions? Check out our FAQ
Coronavirus Self-Employed Income Support Scheme
Following concerns they had been ignored, the self-employed received details of support from the Government on 26 March.
Like the Job Retention Scheme, eligible self-employed workers will receive the lower of 80% of their average monthly income or £2,500.
Initially intended to cover three months (April, May and June 2020).
To find out more on how it will be calculated and other key details, head to our blog.
Coronavirus Business Interruption Loan Scheme (CBILS)
This loan scheme is designed to provide a guarantee of up to 80% against a loan where otherwise the lender might not see the business as eligible.
This means, where the borrower has a sound proposal but insufficient security.
If as a business you have sufficient security the lender will lend under usual terms, not CBILS.
It should be noted therefore, this is not a guaranteed source of funding and the lender can still say no.
On 20 March it was also announced the loans will be interest free for 12 months.
More details are available on the British Business Bank website.
Business Rates Relief / Grants
If you receive small business rates relief (rateable value of under £15,000) you will receive a grant of £10,000.
If your business is in the retail, hospitality or leisure industry and you have a property with a rateable value between £15,000 and £51,000 you will receive a grant of £25,000.
Further, all businesses in those industries will receive a 12 months business rates holiday.
Note, this will be arranged and paid by your local council and you should expect to hear from them in early April (we hope not by post to an address you can’t get to…).
Enhancement to Statutory Sick Pay
Sick pay is now available to employees from Day 1 of their illness or self-isolation period.
Note, those in self-isolation should obtain a doctors note via the 111 service.
Further, businesses with less than 250 employees will be able to reclaim the SSP paid from HMRC.
At present the details of how these funds will be reclaimed has not been made clear but our guess would be it will follow a similar path to maternity pay and be offset against other PAYE and NI due.
TAX POSTPONEMENTS AND PAYMENT ARRANGEMENTS
Announced on 20 March, any VAT payments due between 20 March and 30 June will be automatically deferred. No application is required.
It has been confirmed returns should be filed as usual but not paid. Refunds will be paid by HMRC as usual.
Importantly, if you normally pay VAT by Direct Debit, you must cancel this to stop HMRC taking payment.
Income Tax Deferral
Some who pay income tax by self-assessment are required to make a payment on account in July each year. The payment due July 2020 is to be deferred until January 2021 with no need for any application.
HMRC Coronavirus Helpine
HMRC have launched a new helpline just for Coronavirus (COVID 19). The aim is to help agree payment plans, suspend debt collections and cancel penalties in certain circumstances. You can reach HMRC on 0800 0159 559. We suggest speaking with them as soon as you believe you may have an issue.
HELP FROM US
Often the news headlines don’t reveal the full truth behind the above options, so one of our first jobs is to clear up the message and explore the detail, hence this page.
We’ll be holding our clients hands, as always, as they look to navigate these options and the next few months in general.
After that, most businesses are looking very closely at cashflow so we’re creating a variety of resources to help them.
FREE Business Continuity Webinar
Join us on Tuesday 31 March at 11am for a free webinar to help you with your Business Continuity Planning.
Nearly every business is affected at present and Continuity Planning provides peace of mind for you as the business owner.
Find out how to create your plan and how it will help you at times like this and going forward.
FREE Cashflow e-book
Released late last year, if you haven’t downloaded it already it contains a number of actionable tips to improve your cashflow.
FREE Cashflow Software
We are providing free cashflow software, Fluidly, to our clients to help them understand exactly where their business is and how the future looks.
There will also be a FREE webinar run by Fluidly themselves to show you how to get started.
No problem, we’re working with clients to put together Coronavirus Action Plans, Cashflow Forecasts and reviews of Business Plans.
If you need more help accessing support and planning ahead, get in touch.
READ THE LATEST ON CORONAVIRUS
Having seemingly been ignored, the Government announced support for the self-employed on 26 March with it's Income Support Scheme. Similar in some ways to the support for employers, the main question was always going to be, how will it be calculated. Self-employed...
Updated 27 March 2020We're getting some great questions about the Job Retention Scheme from our business community and wanted to share them (and the answers!) with as many of you as possible. Information is still coming out on this so we'll update regularly as we...
We are all facing a considerable level of uncertainty at the moment and for business owners in particular there will be a host of thoughts occupying your minds as to how to navigate the next few weeks or potentially months as the world battles against the coronavirus...
No doubt there’s a lot to take on, so if you still have questions or would like some help getting your business through the next few months, please do get in touch.